SanDisk (NASDAQ: SNDK) has seen its stock price rise by over 1000% since its IPO last year. This strong performance is backed by an Elliott Wave analysis that shows a clear path to even higher prices. The analysis starts with SNDK’s rise from a low point in April 2025, reaching Wave I at $286 in November 2025. After this, there was a three-wave pullback, known as Wave II, which hit $183. Wave III then pushed the stock to new highs in a nested structure. The bullish trend is ongoing, with target prices between $440 and $501. The price increase will likely happen through a series of third and fourth waves. Traders should look for strategic entry points during daily pullbacks, as these dips are expected to attract buyers. Corrections are likely to occur in patterns of 3, 7, or 11 swings. The current primary daily cycle suggests prices will surpass $500. Traders should enter the market after a 3, 7, or 11-swing correction using the Elliott Wave method. The proprietary Blue Box system highlights high-probability entry zones, helping traders position themselves to benefit from the expected bullish trend. The bullish sequence for SNDK is unfolding as we anticipated back in late 2025. With the stock now around $415, the strong Wave III structure we identified is dominating the momentum. This follows last week’s announcement of a new partnership to provide next-generation flash memory for AI data centers. The Q4 2025 earnings release last week acted as a significant boost. The company reported a 35% increase in enterprise storage revenue year-over-year, surpassing all expectations. Market validation is clear, as open interest in the March 2026 $450 call options has more than doubled in the last five trading days. This indicates traders are positioning for a continued move towards our price targets. For traders in derivatives, any short-term weakness should be seen as a buying opportunity. The main strategy should be to buy call options or call spreads on dips, as the overall trend remains strongly bullish. A small pullback towards the ten-day moving average, currently near $400, would be an ideal entry point. Implied volatility has decreased to 38% since the earnings announcement, down from over 55% beforehand, making long-call strategies more affordable. Traders might consider buying at-the-money call debit spreads to limit risk while capturing anticipated price gains. This strategy aligns with the expectation of nesting third and fourth waves before the next major price increase. This price behavior is similar to what we witnessed in leading AI-related hardware stocks during the 2025 rally. Those stocks also showed strong impulses followed by short, orderly pullbacks that created great entry points. The current setup in SNDK fits this pattern, pointing towards a strong breakout into the $440 – $501 range.

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